Nigerian Court lifts order on Capital Oil

Nearly a month after a Federal High Court made an order freezing his accounts and granting control of his company’s assets and facilities to Asset Management Corporation of Nigeria, AMCON, reprieve came to embattled Mr. Ifeanyi Ubah, owner of Capital Oil and Gas Industries Limited, as the court on Wednesday discharged the order it granted freezing the properties of the company.

The court had last month granted the Asset Management Corporation of Nigeria, AMCON, immediate possession of properties belonging to the company and its owner, Ifeanyi Ubah.

The order freezing the company’s properties was made under Sections 49 and 50 of Amcon’s Act.

While discharging the order, Justice Abdul Kafarati held that AMCON did not have to destroy or kill a going concern just because it is owing it some money.

He upheld the argument of Mr. Ifeanyi Uba’s lawyer, Chief Wole Olanipekun, a senior advocate of Nigeria, to the effect that the duty of AMCON was to make sure that debtors pay their debt and not to push them out of business.

The judge also faulted the method adopted by AMCON in securing the exparte order freezing the company’s accounts. Although the judge could not find any section of the AMCON Act he could rely on to vacate the order, he chose to rely on the inherent jurisdiction of the court and Section 6 (6) of the Constitution.

Justice Kafarati also stated that it was not in doubt that the company’s business was a going concern when the order was made. He also said that AMCON did not gain anything from the order he granted them since about a month ago.

He noted that since AMCON could not dispose the properties while the case was in court, that it is prudent to allow the Mr. Ubah to continue to operate his business and organise how to repay the debt. He therefore directed AMCON to allow Capital Oil continue with its business while the company negotiates how to pay the debt.

“To stop the company from operating might have adverse effect on the economy of the country, parties should sit down and agree on how the debt would be repaid instead of shutting down the business”

The court had earlier varied the order following an application by the company for an order to allow it pay its workers’ salaries.

Ubah and Capital Oil are allegedly indebted to AMCON to the tune of N48.014 billion and were among the 113 companies and 419 directors/shareholders that the Central Bank of Nigeria, CBN, listed as AMCON’s debtors.

The banks have since been barred from extending further credit to the debtor companies and their directors until they repay their loans.

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Closure of Capital Oil may aggravate fuel scarcity —Ubah •Alleges plan to take over his business

THE Chairman and Chief Executive, Capital Oil and Gas Industries Limited, Chief Ifeanyi Ubah, has said a court order for the forfeiture of his company’s facilty would aggravate the already worsening fuel supply and distribution across the country.

He also alleged that the court order was part of a grand plan to take over his business, which he said, accounted for 35 per cent of supply and distribution of Premium Motor Spirit (PMS) from the Nigerian National Petroleum Corporation (NNPC).

Ubah made this known in a release made available to Sunday Tribune, adding that he had already complied with the court order.

Justice A. Abdu-Kafarati of the Federal High Court, Abuja, had granted an ex-parte order for the temporary forfeiture of the company’s assets, especially its jetties and depots located at Apapa, Lagos with immediate effect.

Ubah had been engaged in a three-pronged battle with Coscharis, Access Bank and AMCON over fuel subsidy issue.

He said his company, in compliance with the court order, had, since Friday, stopped operations with a total load-out of 224 trucks of PMS (equivalent of 8,151,270 litres) belonging to NNPC.

He said that would be the last operation till further notice, adding; “We hope this will not aggravate the already worsening fuel supply and distribution being experienced in the country.”

He also alleged that the findings by the Aig-Imoukhuede-led committee on subsidy was aimed at killing his business interest.

“We had cried out that the unsubstantiated findings by the Aig-Imoukhuede Committee were strangulating our business by denying us access to payments from the Federal Goverment, credit, business partners, goodwill as well as making us look like criminals and people without integrity.

“Before the court order, our operations had been greatly threatened. Now the open-secret plan to take over our business has materialised.

“This is no doubt a clear case of victimisation. Nigerians will unfortunately be worse for it. If only they had put the nation’s interest first.

“That a company like ours, which accounts for about 35 per cent of daily petroleum products distribution in Nigeria, can be the subject of such an application and court order is baffling.

“The government has refused to pay us. It would appear that those who want to take over our business are succeeding with the aid of their friends in government.

“They came up with subsidy we defended it and they could not refute our defense. They came up with Access Bank and Coscharis, we went to court and they refused to appear. Rather, they went to a United Kingdom (UK) court. Now they are coming with AMCON.

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Fuel Subsidy Trial - Uba to Remain in Custody

 Lagos — The Chief Executive Officer of Capital Oil and Gas, Ifeanyi Uba and four other oil marketers standing trial on alleged fuel subsidy scam will remain in the custody of the Special Fraud Unit of the Nigeria Police as a Federal High Court sitting in Lagos yesterday threw out their bail applications.

Uba is standing trial alongside Nsika Usoro, Godfrey Okorie, Chibuzor Ogbuokiri, and Joseph Orji, all of whom are being prosecuted by the Special Fraud Unit of Nigeria Police Force, over allegation of defrauding the Federal Government to the tune of N22.4 billion oil subsidy funds.Ruling, Justice Okon Abang said the bail application filed by defendant counsels was defective and incompetent.

Justice Abang had last Wednesday fixed Monday October 22 for the ruling.Uba's lead counsel, Joseph Nwodike (SAN) had argued that it was undisputed that the applicant had been remanded in custody since October 9 and the respondents should be granted bail because the alleged offence for which they were being remanded is not a capital one.

But in a counter submission, the prosecuting counsel, Godwin Obla, argued that by way of preliminary objection, he was opposing the exparte order made by the court on October 15, ordering that the respondents filed a response within a particular time limit.

He also told the court that he was opposed to the application filed by the applicant's counsel seeking the release on bail of the applicants."Although the applicants were arrested on Oct. 9, the bundle of exhibits was only taken out on October 11, which is the constitutional time allowed for the respondents to hold the applicants. By the provisions of Section 232 of the 1979 constitution, there is no need for an arraignment of the applicants before a remand," Obla said.

The respondents are billed to appear before the magistrate on October 31, 2012.

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Billionaire businessman Ifeanyi Uba spends second week in detention

The billionaire businessman and MD of Capital Oil and Gas Ltd is currently in a small cell at the Special Fraud Unit in Ikoyi.

 He was arrested on October 9th following accusations of fraud totaling N43billion from the Aigboje Aig-Imoukhuede led presidential committee on verification and reconciliation of fuel subsidy payments. 

The committee discovered gross abuse by many marketers and reported the case to the police. His company leads the list of 25 companies indicted by the committee which discovered about N62 billion of subsidy fraud. 

 So he's now facing criminal investigation and prosecution for Capital Oil and Gas' involvement in fuel subsidy fraud. He was in court yesterday and the Special Fraud Unit of the Nigerian Police told the court that the money stolen by Mr Uba, could conveniently pay the monthly allocation of 11 states of the federation and asked the courts not to grant him bail, which they didn't. 

The case was adjourned to Monday October 22nd. Meanwhile, his company has been blacklisted by banks on the recommendation of the Central Bank of Nigeria.

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